Thyssenkrupp to consider industrial players for sale of defense division – IG Metall

By Tom Käckenhoff

DUSSELDORF, June 21 (Reuters) – Thyssenkrupp should explore a sale of its warship division to rivals, in addition to private equity players and a possible IPO, according to influential German union IG Metall .

Executives should “keep an eye on industrial investors”, IG Metall said in a union statement seen by Reuters, adding that if the union remained open to a full or partial sale of the company, options should also include keeping of the division.

Thyssenkrupp is currently exploring options for Thyssenkrupp Marine Systems (TKMS), which builds submarines and frigates, with scenarios ranging from a possible split to a joint venture with a rival.

IG Metall, Germany’s largest and most powerful union, announced last month that it would set up a committee to join sales negotiations, and a first meeting with TKMS management is scheduled for June 22, the document said.

Sources told Reuters that possible industry partners for TKMS include Dutch group Damen and Sweden’s Saab, while private equity players including Carlyle are also interested.

IG Metall stressed its demands, including the protection of jobs and sites, and said no sale should lead to the dismantling of TKMS, adding that any sale could only take place with the consent of workers’ representatives. (Reporting by Tom Kaeckenhoff; Writing by Christoph Steitz; Editing by Miranda Murray)